DMC Prices Will Fluctuate Rangebound in the Near Term

This week, the silicone market remained stable, and some downstream companies restocked appropriately. The mainstream domestic DMC transaction prices remained stable for the time being, and the high-end price dropped slightly.

On the supply side, DMC factories produced at a low operating rate this week. DMC plants in Jiangsu began maintenance last weekend, and other enterprises maintained their original maintenance cycle.

As of April 13, the average price of #421 silicon (for silicone) in east China was 17,450 yuan/mt, down 150 yuan/mt from a week earlier. Prices of methyl chloride in Shandong stood at 2,450 yuan/mt, up 100 yuan/mt. DMC raw material costs declined.

The overall domestic consumption was relatively stable this week. The mainstream transaction prices of silicone bulk products have not changed yet. The price drops were mainly for high-priced products whose sales were poor. It is expected that in the short term, the prices of DMC will fluctuate rangebound mainly due to the poor demand and the reduction of operating production lines.